Euro area annual inflation was 1.8% in July 2007, down from 1.9% in June. A year earlier the rate was 2.4%. Monthly inflation was -0.2% in July 2007.
Inflation in the EU Member States
In July 2007, the lowest annual rates were observed in Malta (-0.2%), Denmark (1.1%), France and Slovakia (1.2% each), and the highest rates in Latvia (9.5%), Hungary (8.3%) and Bulgaria (6.8%). Compared with June 2007, annual inflation rose in twelve Member States, remained stable in two and fell in thirteen.
The lowest 12-month averages4 up to July 2007 were in Malta (0.7%), Finland (1.3%) and France (1.4%); the highest were in Latvia and Hungary (7.5% each) and Bulgaria (5.5%).
The main components with the highest annual rates in July 2007 were education (9.1%), hotels & restaurants (3.4%) and alcohol & tobacco (3.3%), while the lowest annual rates were observed for communications (-1.7%), clothing (0.1%) and recreation & culture (0.3%). Concerning the detailed sub-indices, restaurants & cafés (+0.12 percentage points), education and tobacco (+0.07 each) had the largest upward impact on the headline rate, while fuels for transport and telecommunications (-0.11 each), IT equipment, audio-visual equipment, heating oil and garments (-0.07 each) had the biggest downward impacts.
The main components with the highest monthly rates were hotels & restaurants and recreation & culture (1.2% each) and transport (0.6%), and the lowest were clothing (-8.2%), household equipment (-0.3%), food and miscellaneous (-0.1% each). In particular, package holidays (+0.14 percentage points) and accommodation services (+0.10) had the largest upward impact, while garments (-0.45) and footwear (-0.11) had the biggest downward impacts.